HLB ZAMBIA on SALES BILL ACT, 2019 – Comparative Analysis
Economy

Cabinet led by the Republican President met on 1st April, 2019 at which the sales tax Bill, 2019
and the income tax (Amendment) Bill, 2019 were discussed and approved. Approved also is the
repealing of the VAT act which has been operational in Zambia since 1995. Sales tax replaces
the VAT act and is levied on the supply of goods in the republic on Manufacturers, distributors,
wholesalers and retailers and on the importers of goods into the country as well as on services.

This will be effected on 1st July, 2019 as indicated by the Minister of Finance. Below are some
of the contents of the Bill;

1. SALES TAX WILL BE TAXABLE AS FOLLOWS;

•Exempt supplies, these will not attract any Sales tax.
• Taxable supplies; these goods and services will attract sales tax at 9% on local supplies and
16% on imports.

2. MINISTER MAY BY STATUTORY INSTRUMENT EXEMPT THE BELOW;
• Capital goods.
• Inputs.
• Exports.
• Some supplies to privileged persons.
• Designated basic and essential goods and services.
• Designated basic and essential goods and services.

3. VAT vs Sales Tax Bill

HLB Zambia Comparative Analysis of VAT versus Sales Tax

 

4. INVOICING
• Should be issued using an electrical fiscal device
• Pre-printed tax invoice book
• Accounting software prescribed by commissioner general.

5. OTHER MATTERS TO NOTE.
• Commissioner general may determine a different accounting period for a taxable supplier
subject to conditions that the commissioner general may determine. This is upon an application
by the taxable supplier.
• A recipient of an imported service will pay sales tax were a service is performed or utilised in
Zambia and the benefit of this supply is for a recipient in Zambia.
• Sales tax on importation will be charged as though it were customs duty since it shall not be
recoverable.
• A non-registered supplier who receives an imported service will be required to account for
Sales tax if that service cumulatively with other services/ goods exceeds the threshold
prescribed.

Should you require further information and guidance pertaining to sales tax, do not hesitate to
contact the below or our tax team;

a. SHUKO NDHLOVU Senior Partner shuko@hlb.co.zm

b. JOSEPH CHAONSA Tax Director joseph@hlb.co.zm

c. ALBERT NGULUBE Snr Manager – Tax albert@hlb.co.zm

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